Medical Property Investment Fund (MPIF) is to pilot four multi-use medical centres next year as part of its new generation Assura Health and Wellness Centres.
The medical property specialist announced the drive into extended use centres, which could include pharmacies and gyms, as it announced profit before tax of £3.3m for the six months to 30 June.
Investment manager Richard Burrell said the company was looking to capitalise on the government’s new practice-based commissioning initiative, which aims to encourage a more service-led approach in the primary care sector, with accommodation for other service providers.
The typical lot size of the Assura Centres will be in excess of £5m.
Since being floated in November 2003, the company has committed £260m of capital in 72 health centres and remains on course to complete its £400m investment by the end of 2006.
Burrell said: “We have a good spread of existing and new development properties and are building towards a critical mass that will make us the largest player in this market.”
The company reported 6.7% average net initial yield on capital committed, with potential for good rental growth, according to Burrell.
“From an investor’s point of view the company offers an asset-backed play with rental paid by the government.”
MPIF plans to operate on a gearing of 55%, growing its portfolio to £400m.
It also announced an initial £100m revolving credit facility with National Australia Bank.
Net assets at 30 June were £136m, against £133m for the same point last year. The company announced an interim dividend of 1.66p, up 25% last year.
References: EGi News 16/09/05
